A form of moving average (or a stock indication commonly used in technical analysis) that applies more significance on more recent data points. This means that it reacts more significantly and noticeably to price changes than a simple moving average, which applies equal significance to all data points in the set. Like other moving averages, it produces buy and sell signals through crossovers and divergences from the historical average.
Exponential Moving Averages
Market Terms
We don't know everything about the markets. We're just devoted to learning. Taken from those smarter than ourselves, here's how we define Exponential Moving Averages.